Contract Services

City of Rancho Santa Margarita

Competitive Procurement of a Solid Waste Collection Contract

2004

Client Needs

The newly incorporated City was entering into its first franchise agreement, after having been serviced under a county contract for five years.  Residential services were not consistent throughout the City and the City lacked sufficient recycling programs.  

HF&H Solutions

After previously assisting the City with negotiations, the City hired us again to conduct the City’s first solid waste RFP process.  We develop an RFP and franchise agreement for single-family, multi-family and commercial refuse, recycling and green waste collection services, managed the procurement process, evaluated the proposals, interviewed proposers and negotiated the final agreement. 

Results

HF&H helped the City achieve:

• Reduction in overall rates by 27%, saving the ratepayers $7.8 million over the 8-year term
• Implementation of a 5% franchise fee
• Reimbursement of procurement costs by contractor
• Outreach Fee of $60,000 per year to City
• Collection at no additional charge from City facilities and at City-sponsored events
• Collection of abandoned items at no additional charge
• New collection vehicles and new residential carts
• Biennial curbside cleanup campaigns
• Improved reporting and performance requirements

New recycling programs and service enhancements, including: 

• Free commercial and multi-family recycling, site visits required
• Automation of green waste collection
• Mixed waste processing of all roll-off box loads
• Electronic waste collection